When you hear about a rising property market, remember it’s not the house rising in value. The house can only depreciate.
It’s the land the house sits on that goes up in value. It’s important to look at the property market from a land perspective. The land around the services and infrastructure most people want to live close to is fixed in supply.
What influences the property market?
The property market is not subject to the same laws of competition. It will sell for the highest prices that the economy can afford to pay for that location value. In other words land will always soak up any of society’s gains.
That’s why here at Markets & Money our property experts keep their fingers on the pulse of Aussie land prices.